Kraft 2010 Annual Report Download - page 38

2009 compared with 2008:
Net revenues increased $82 million (2.8%), due to higher net pricing (2.8 pp). Higher net pricing was driven by input cost-driven pricing, net of increased
promotional spending. Volume/mix was flat as higher shipments in bacon, cold cuts and hot dogs were offset by the discontinuation of less profitable product
lines.
Segment operating income increased $109 million (87.2%), due primarily to higher net pricing, lower costs due to the completion of the Restructuring
Program and favorable volume/mix, partially offset by higher other selling, general and administrative expenses and higher marketing support costs.
U.S. Grocery
For the Years Ended
December 31,
2010 2009 $ change % change
(in millions)
Net revenues $ 3,398 $ 3,453 $ (55) (1.6%)
Segment operating income 1,164 1,146 18 1.6%
For the Years Ended
December 31,
2009 2008 $ change % change
(in millions)
Net revenues $ 3,453 $ 3,389 $ 64 1.9%
Segment operating income 1,146 1,009 137 13.6%
2010 compared with 2009:
Net revenues decreased $55 million (1.6%), due to unfavorable volume/mix (3.3 pp), partially offset by higher net pricing (1.7 pp). Unfavorable volume/mix
was due primarily to lower shipments across most key categories, including pourable dressings, ready-to-eat desserts, spoonable dressings and dry packaged
desserts. Higher net pricing, across key categories, was primarily related to Kraft macaroni and cheese dinners, pourable dressings, ready-to-eat desserts and
dry packaged desserts.
Segment operating income increased $18 million (1.6%), due primarily to higher net pricing, lower manufacturing costs and lower other selling, general and
administrative expenses, partially offset by unfavorable volume/mix and higher marketing support costs.
2009 compared with 2008:
Net revenues increased $64 million (1.9%), due to higher net pricing (3.5 pp), partially offset by unfavorable volume/mix (1.6 pp). Net revenues increased due
to higher input cost-driven pricing across several of our key categories, primarily spoonable salad dressings, dry packaged desserts and ready-to-eat desserts.
Net revenues growth was partially offset by lower volume, net of favorable product mix. This reflected the 2008 exit of Handi-Snacks ready-to-eat desserts, as
well as lower shipments in pourable and spoonable salad dressings, Jell-O ready-to-eat-desserts, barbecue sauce and Cool Whip whipped topping, which were
partially offset by growth in Kraft macaroni and cheese dinners.
Segment operating income increased $137 million (13.6%), due primarily to higher net pricing, lower costs due to the completion of the Restructuring
Program and lower manufacturing costs, partially offset by higher marketing support costs, unfavorable volume/mix (lower shipments, net of improved
product mix) and higher other selling, general and administrative expenses.
U.S. Snacks
For the Years Ended
December 31,
2010 2009 $ change % change
(in millions)
Net revenues $ 6,001 $ 4,964 $ 1,037 20.9%
Segment operating income 845 723 122 16.9%
For the Years Ended
December
31,
2009 2008 $ change % change
(in millions)
Net revenues $ 4,964 $ 5,025 $ (61) (1.2%)
Segment operating income 723 638 85 13.3%
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